Replies to post #116 on Yanglin Soybean, Inc (fka YSYB)

[BeachBum]

Net sales were $139,029,816 for the year ended December 31, 2011, a decrease of $26,813,302 or 16.17% from $165,843,118 for the year ended December 31, 2010. This is mainly caused by the sharply drop of the revenue of soybean meal over the period at rate of 30.45%, resulting from large scale of imports of Genetically-Modified (“GM”) soybeans from the America and South America with the lower price. Nevertheless, the soy protein concentrates and low-temp soy meal increased at rates of 70.37% and 52.88%. This was mainly due to the our focus on developing the markets for deep-processed products.



In 2011, following the adverse impact of global economic crisis, the index of commodity selling prices suffered a rise for most of the categories of commodities, including food. According to data provided by the PRC State Statistics Agency, from January 2010 to December 2010, the index of retail prices of food, as compared to the same month a year before, was well over 100, the lowest being 108.7 in November 2011 and averagely over 110 the rest of the year. However, this trend had no positive effect on the selling prices of our products in which the average selling price of soybean meal continued at the same level in 2011, and 173,716 tons of soybean meal were sold (approximately 72% of our total output), resulting in negative growth rates of -30.45%. The average selling price of soybean oil and salad oil increased by 19% in 2011.



The PRC has long been importing large volumes of GM soybeans from US and South America, and such imports reached new peaks from the end of 2010 through 2011. The Chinese Ministry of Commerce disclosed that the aggregate import volume have reached over 50 million tons in 2010, an increase of 17.6% over that of 2009. During the year of 2011 the imported beans were usually sold at prices lower than that of domestically produced soybeans, representing a low cost alternative for domestic processors which previously used domestic beans as raw materials. Importation of GM soybeans significantly influenced price levels in the PRC’s domestic market for soybean products.